AGs Inject Accountability into Pharma Practices via $202M Gilead Settlement

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  • New York AG Letitia James, along with a bipartisan coalition of 48 other AGs and in coordination with the U.S. DOJ, announced a $202 million settlement in principle with Gilead Sciences, Inc. (“Gilead”), to resolve allegations that the company ran an illegal kickback scheme to promote medications.
  • According to the AG’s press release, Gilead violated federal anti-kickback laws by providing improper incentives—such as meals, travel, and honoraria—to health care providers to promote HIV medications, paid high-volume prescribers to participate in promotional programs and dinners, and that Gilead’s internal compliance systems failed to prevent these practices.
  • Under the terms of the settlement, which has been approved by the U.S. District Court for the Southern District of New York, Gilead will provide $49 million for Medicaid programs nationwide, with the remainder going to Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP).
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